Getting ready to close & just got settlement statement. I have up to $7,950 in seller credit, however due to the limitations of how it's being applied, they only have about $1600 in seller credit toward closing cost....this is my question, can't I take the additional seller credit & pay off the UFMIP instead of financing into the loan - which wouldn't reduce the cash needed to close, but rather reduce the loan amount accordingly? I have question into lender now - but wanted to get some feedback if possible!!
Think I got my answer - they are sending revised HUD with seller paying the UFMIP & will reduce my loan amount by $4500 - woo hoo!!!!